BUSINESS

Sales of Crocs soar due to Covid, company cites “brand momentum”

Jan 11, 2021, 4:47 PM
Crocs in pandemic...
The pandemic has made the unapologetically 'ugly' foam clog a hit with consumers. Photo: Anatoliy Tesouro/Shutterstock
Originally Published: 11 JAN 21 15:30 ET
Updated: 11 JAN 21 16:29 ET

(CNN) — Crocs’ bittersweet moment has arrived in the midst of a global pandemic. The foam clog, derided by many for being “ugly,” expects 2020 to be a record sales year.

On Monday, Crocs raised its fourth-quarter (ended Dec. 31) outlook and full-year outlook for 2021, now forecasting fourth quarterly year-over-year revenue to have increased about 55% to between $407 and $410 million, up from its previous estimate of a 20% to 30% increase.

The company expects sales to have increased over 12% in 2020, to a record $1.38 billion, up from its previous forecast of about 5% to 7% growth. It also anticipates sales growth of 20% to 25% in 2021. Crocs has not yet released the date of its fourth-quarter results.

Investors cheered the news, lifting Crocs shares up over 12% to $74.91 on the Nasdaq.

“Amidst a global pandemic in 2020, we will deliver the strongest revenue in Crocs’ history,” Crocs CEO Andrew Rees said in a statement. “Our brand momentum is exceptional, and we anticipate another record year in 2021.”

[Speaking at the annual ICR investor conference on Monday, Rees said consumers’ overwhelming need for comfort in a turbulent year helped drive strong sales of its iconic shoe.

“We definitely benefited from consumer casualization,” said Rees, adding that the clogs are also easy to clean and sanitize, thereby enhancing their pandemic-time appeal. Looking ahead, he said value and comfort will continue to be important for shoppers.

More younger consumers also gravitated to the brand during the pandemic, said Rees.

“They were younger, predominantly female consumers. This was a big driver of growth in North America. As the year progressed, it broadened to new younger male consumers,” he said.

A couple of quirky collaborations, too, likely helped sell millennial and TikTok-loving Gen Z’ers on the clogs. In 2020, Crocs teamed up with a number of artists and brands, including Post Malone, Justin Bieber and fast-food chain KFC on special edition collections. Its glow-in-the-dark collaboration with Latin trap artist Bad Bunny quickly sold out after its September launch.

The-CNN-Wire
™ & © 2021 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

Other reading:

Crocs donating its shoes to healthcare workers

Today’s Top Stories

Business

draper shooting police...
Mark Jones

Party ban becomes permanent for Airbnb

Airbnb announced this week that it is placing permanent ban on disruptive parties. In April, two people died in a shooting at an Airbnb in Draper.
1 day ago
In this undated photo released by Toyota Motor Corp., its bZ4X vehicle is shown during an online pr...
YURI KAGEYAMA AP Business Writer

Toyota recalls electric car for faulty wheel that may detach

The "bz" in the recalled model's name, as well as others in the works, stands for a "beyond zero" series, including sport-utility vehicles of all sizes, pickup trucks and sportscars, according to Toyota.
7 days ago
A model wears a creation as part of the Giorgio Armani men's Spring Summer 2023 collection presente...
COLLEEN BARRY

Gucci unveils ‘HaHaHa’ collaboration with Harry Styles

Gucci has teamed up with Harry Styles for a between-season collection that infuses tailoring with adolescent joy. The collection is titled “HaHaHa.”
11 days ago
A now hiring sign in an Arby's window.; the Utah employment summary for May showed a slight slowing...
Amie Schaeffer

May’s Utah employment report showing signs of inflation impact

The employment rate in Utah remains steady but may be showing signs of inflation's impact, according to the state's May employment summary.
14 days ago
Attic fire in Cowabunga Bay building....
Mark Jones

Cowabunga Bay Water Park set to reopen Thursday after fire last weekend

Following a building fire last weekend, Draper's Cowabunga Bay Water Park is scheduled to reopen to the public on Thursday.
16 days ago
Utah airbnb rentals rising interest rates affecting millennial home buyers...
Dan Bammes

One realtor sees “signs of hope” in Utah housing market

With home listings up and home sales down, one Utah realtor is encouraged about the future of the Utah housing market, leading to what she calls "signs of hope."
17 days ago

Sponsored Articles

Tax Harassment...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
national heart month...
Intermountain Healthcare

National Heart Month: 5 Lifestyle Changes to Make Today to Keep You Heart Healthy

Heart disease is the leading cause of death for both men and women. One person dies every 36 seconds in the United States from cardiovascular disease
Joseph Smith Memorial Building...
Temple Square

The Joseph Smith Memorial Building is an icon of Salt Lake City | Why hosting an event at this beautiful location will make you a hero this year

Here's why hosting an event at the iconic Joseph Smith Memorial Building in downtown Salt Lake City will make you a hero this year.
Sales of Crocs soar due to Covid, company cites “brand momentum”